According to the notice, travelers are advised to switch off the Note 7 prior to boarding a craft, and not turn on the handset for the duration of the flight. The ministry is also advocating against storing the Note 7 in checked baggage:

Unlike the U.S., Samsung hasn't started selling the Note 7 in India before issuing the global recall, so the potential for errant units out in the wild is slim. That said, there are customers that have bought the phone from other countries and imported it into India. It is unlikely they'll be able to get their units exchanged within the country, but Samsung has announced that all those that have pre-ordered the Note 7 via official channels in India will receive a Gear VR for free and a $50 Oculus content voucher to make up for the delay.

Samsung has now issued an official statement regarding the aviation ministry's decision:

We are aware of the Directorate General of Civil Aviation (DGCA) notice. Consumer safety and peace of mind are our top priority. Galaxy Note7 sales have not started in India, and we have delayed sales to alleviate any concerns. We plan to expedite new shipments of Galaxy Note7 soon to reduce any inconvenience for our customers.